Privatisation of Primary, Secondary and Higher Education in India

Abstract

The impact of education is intense and pervasive on almost all human activities. In the knowledge economy, professional and personal development of people through education and training are critical for ensuring social progress and economic growth. In economic sense, investment in education is profitable. Parents of successive generations have, therefore, been concerned about the level and quality of schooling of their children. As education and training provide tangible benefits to stakeholders, mainly the society, individuals and institutions, they participate in the process of planning, management and financing of education. The extent of socio economic gains derived from education and the resource costs borne by stakeholders, namely the beneficiary students and service providers, widely differ for various levels and types of courses. The measurement of such benefits and costs are, however, fraught with many conceptual and measurement difficulties. The socio-economic benefits reaped by students over the entire span of working life are, therefore, accepted axiomatically. It is generally perceived that the costs of not acquiring new knowledge and skills are more than the costs of obtaining them. In fact, the costs of provision of educational services brone by the Government or private providers and students/parents, are, therefore, considered equal to or less than the expenditure incurred by the beneficiary students. The expected gains from education and training generate high demand for educational services, which when not provided by the government or other philanthropic organisations, encourage private investors and entrepreneurs to offer various courses on self-financing basis. When profit motives dominate and quality of education is sacrificed or fees and other charges levied in excess of expenditure on services provided, such educational ventures are generally termed as commercial.